Breaking: In a significant move, India’s Finance Ministry has ordered an urgent investigation into WazirX, a major cryptocurrency exchange, for alleged fraudulent activities following a massive hack, marking a pivotal moment in the country’s crypto regulation efforts.
According to an official memorandum dated February 14, 2025, and confirmed by the Ministry of Finance, the Financial Intelligence Unit (FIU) has been directed to probe WazirX after a July 2024 cyberattack that resulted in the loss of Rs 2,000 crore ($234.9 million) in investor funds. The investigation, detailed in a document shared on social media, focuses on transparency and compliance issues tied to the hack, which devastated millions of users.
Furthermore, the hack—linked to North Korean hackers from the Lazarus Group, as confirmed by cybersecurity experts and reported on Wikipedia—exposed vulnerabilities in WazirX’s security, including its multisig wallet system. Insiders reveal that the attackers breached the exchange’s hot and cold wallets, draining funds and leaving users unable to access their investments. Moreover, the arrest of a suspect, Masud Alam, in November 2024 by Delhi police, as reported by Recorded Future News, marks progress, but frustration persists among affected investors.
Previously, WazirX faced scrutiny after the hack, with its CEO, Nischal Shetty, coming under fire on social media for not adequately addressing user losses. Historically, India’s crypto sector has operated in a regulatory gray area, with cryptocurrencies not recognized as legal tender but subject to a 30% tax on profits and a 1% Tax Deducted at Source (TDS), as outlined by kychub.com. In the wake of this incident, experts believe the investigation could signal tighter regulations and greater oversight of crypto exchanges.
According to sources, crypto experts and users on X, like
@CryptoPatel and
@bitcoin_duniya, have hailed the probe as a necessary step toward justice, though many demand accountability for Shetty, whose leadership has been heavily criticized.
𝐘𝐨𝐮𝐫 𝐡𝐚𝐫𝐝 𝐰𝐨𝐫𝐤 𝐦𝐢𝐠𝐡𝐭 𝐟𝐢𝐧𝐚𝐥𝐥𝐲 𝐩𝐚𝐲 𝐨𝐟𝐟
— RK Gupta (EarnWithRK) (@earnwithrk) March 7, 2025
🇮🇳🔥 The Indian Finance Ministry has ordered the FIU to investigate #WazirX for fraud. @FinMinIndia @NischalShetty your time is up… 😡
Plz Posts, shares, and likes shouldn’t stop until this fraud lands in… pic.twitter.com/jA3Ll2AZeb
In a statement on X, user
@earnwithrk urged, “Posts, shares, and likes shouldn’t stop until this fraud lands in jail!” reflecting widespread public outrage.
The impact of this investigation is urgent, with over Rs 4,500 crore in user funds potentially at risk, according to trending posts on X. Officials have described the situation as critical, urging immediate action to restore trust in India’s crypto ecosystem and protect investors. The probe could also reshape the regulatory landscape, pushing for stricter compliance with anti-money laundering (AML) and know-your-customer (KYC) norms, as mandated under India’s Prevention of Money Laundering Act (PMLA).
In summary, the latest updates confirm that India’s Finance Ministry is intensifying its scrutiny of WazirX, following a devastating hack and allegations of fraud. The bottom line is that as further details emerge, this investigation could redefine cryptocurrency regulations in India. Key takeaways include the urgent need for accountability, the scale of financial loss, and the potential for sweeping policy changes—readers should stay tuned for more comprehensive coverage.
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